The beer and allied manufacturing sectors of Uttar Pradesh are poised for major expansion, backed by fresh investments and a standardised excise policy. The Director General of the Brewers' Association of India (BAI), Vinod Giri, has announced that "The beer industry and its ancillary industries will be investing INR 5,500 crore (INR 55 billion) in the next three years" in UP. The investment will focus mainly on aluminium can production, greenfield breweries, glass manufacturing and ancillaries. 

Explore- Most accurate data to drive business decisions with Global ALuminium Industry Outlook 2026 across the value chain

BAI represents three leading companies, viz., United Breweries Ltd (UBL), AB InBev, and Carlsberg. Collectively, they operate over 55 breweries, accounting for more than 85 per cent of the beer sold in the Indian market.

Poised for expansion of a promising market

Identifying Uttar Pradesh as the hub for market growth, BAI Director General Vinod Giri observed that the industry is “betting big” on the state. He also commended the new excise policy announced by the state government for 2026-27 as “progressive”, having a “well-balanced approach” toward the development of industry.

“Work on two greenfield breweries, involving an investment of around INR 1,500 crore (INR 15 billion), is already underway,” Giri maintained. He added that two main aluminium can production plants valued INR 20 billion are in the pipeline. Glass production units worth another INR 20 billion are expected to materialise soon.

Additionally, plans for malting units and paper box manufacturing facilities are being considered, signalling a broader effort to deepen the state’s beverage supply chain.

Giri noted that these investments are expected to generate direct and indirect employment while strengthening upstream and downstream linkages within the state.

Standardised excise framework on beer consumption

The new Uttar Pradesh excise policy retains existing tax rates on beer, while introducing only a marginal increase for Indian Made Foreign Liquor (IMFL). The overall price impact on spirits is expected to be around INR 10 every 180 ml bottle, with beer prices remaining unchanged.

“This calibrated approach is expected to encourage consumption of high-quality, lower-alcohol beverages like beer without jeopardising the state government's tax revenues,” Giri mentioned. He continued, “While there has been a marginal hike in consumer prices of hard liquor, beverages with low alcohol content like beer have been spared.”

He further emphasised that the policy enhances transparency and clarity across licensing, distribution and taxation processes, creating a stable and growth-oriented operating environment.

North India drives the demand momentum

At present, India ranks 13th in beer consumption on the global platform, with northern states such as Delhi, Haryana, and Uttar Pradesh covering a considerable share of demand.

Combining sustained consumption growth, policy continuity and large-scale manufacturing investments, they are expected to accelerate industry expansion across the region.

The latest announcements indicate rising confidence among leading brewers in positioning Uttar Pradesh both as a high-consumption market and an emerging manufacturing hub, reinforced by policy and fiscal stability on lower-alcohol beverages.

Note: As of February 23, INR 1 = USD 0.01 

Don't miss out- Buyers are looking for your products on our B2B platform

Must read: Key industry individuals share their thoughts on the trending topics